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Google, BlackBerry, EarthLink and Red Hat ask DoJ and FTC to help starve patent trolls
Tired of all the patent-related stories? Especially the ones that seem like they are more about financial gain than fairness? We thought so. We'd imagine it's even more of a frustration if you're one of the companies regularly involved. No surprise then that some firms -- such as Google, BlackBerry, EarthLink and Red Hat -- have decided to do something about it, taking the fight directly to the FTC and DoJ. In a recent blog post, Google explains that -- along with its collaborators -- it has submitted comments to the aforementioned agencies, detailing the impact that "patent trolls" have on the economy. While the financial cost to the US taxpayer is said to be nearly $30 billion, the four companies also point out how such behavior hurts consumers even further, suggesting that when start-ups and small businesses are strong-armed, innovation and competition suffer. Some specific practices such as "patent priveteering" -- when a company sells patents to trolls who don't manufacture anything and therefore can't be countersued -- also come under direct criticism. The cynical might assume this all comes back to the bottom line, but with the collaborative extending an invitation to other companies to help develop revised, cooperative licensing agreements, they are the very least making it difficult for them to engage in similar behavior in the future. At least until the FTC and DoJ respond.
EarthLink completes fiber broadband rollout in Eastern Tennessee
Anyone familiar with the unglamorous circumstances of Elvis Presley's passing might agree he needed a little more fiber in his diet. That would've been the case if 'the King' was of this generation, as the state he called home is pretty well wired these days, and even more so now EarthLink has completed its "Eastern Tennessee Broadband Project." Over 500 miles of fiber optics have been installed in "underserved areas," offering up to 10 Gbps speeds to businesses and institutions, with some 'last mile' providers already claiming their stake. Bon appétit, Tennessee. [Image credit: Royce DeGrie / Getty Images]
EarthLink inks deal with Clearwire to use its 4G WiMAX network
EarthLink has been laying low since its Philly-wide WiFi project failed all those years ago, but now it's back in the limelight with Clearwire's 4G network under-arm. The companies have struck a deal for EarthLink to access Clearwire's WiMAX infrastructure, initially to offer wireless, in-home broadband. This is expected to launch in early 2013, with mobile and small business markets being future goals. An LTE network is also in the pipeline, don't forget, and when it goes live, EarthLink is likely to expand the agreement to cover it. The ISP is obviously putting its eggs in the 4G basket, because no one wants wires anymore, do they?
Philadelphia wants to buy Earthlink's former hardware, keep municipal WiFi dream alive
It never came to pass. Philadelphia's city-wide WiFi plan was announced in 2006 and then, after struggling on for two years, died when Earthlink decided it wanted nothing to do with muni wireless. A private company called NAC bought the hardware last year and now the city wants to buy it from them for $2 million. The Mayor's Office pledges to "provide free internet in targeted public spaces," which is somewhat less aggressive than the previous city-wide reach, but ditching the $20/month that Earthlink was asking seems like a fair trade. The only question now is exactly which spaces will be targeted, and if South Street Philly Bagels doesn't make the list that's a damn shame.
SK Telecom no longer casting glances in Sprint's direction
We've been hearing about a possible SK Telecom-Sprint tie-up since July of 2007, but if either firm ever hoped to actually tie the proverbial knot -- well, let's just say that ship has sailed. Given the weakening economy and the general tendency to resist taking risks right about now, the Korean giant has dropped its plans to partner with Sprint in any form or fashion. In related news, Sprint is looking to hop on the quickly expanding layoff bandwagon, but given its humongous Q3 loss, we suppose that's not totally illogical. We're told that the carrier is offering "voluntary buyout packages" to an unspecified number of employees, which is far more awesome than the "thanks, now get the hell out of here" line that's being handed down by so many other firms. Crazy times, we tell you.[Via Boy Genius Report]
Virgin Mobile USA posts 8% subscriber growth, $4.1 million net profit in Q3
Hey, who says everyone loses during tough times? After Virgin Mobile USA crawled through a miserable Q2, things are looking up for the recent acquirer of Helio. The outfit reported 821,491 gross additions to its subscriber list, which marks a respectable 8% year-over-year increase. Furthermore, the company somehow managed to amass a Q3 net profit of $4.1 million, which contrasts starkly with the $7.4 million loss that it posted a year ago. The only down news of the day was that its average revenue per user in the third quarter fell 2% from a year earlier to $20.19, but given that its Q4 forecast shows it notching a revenue increase from 6% to 9%, we suppose it's all good in the neighborhood.[Via RCRWireless]
Virgin Mobile formally seals the deal on Helio acquisition
We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had "completed its acquisition of Helio," and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It's also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.
Philadelphia citywide WiFi officially shut down
We knew it was coming, but Philadelphia's citywide WiFi is now officially being turned off, and Earthlink is planning on pulling down all of its access points. Like basically every other municipal WiFi project, it seems like the cost of keeping the system going outweighed the benefits, and Earthlink couldn't find a buyer willing to take things over. Current Earthlink customers will get 30 more days of service, until June 12, and then it's lights bytes out. Here's hoping Philly coffee shops are ready for an influx of urban warriors.[Via Philebrity, thanks Andy R.]
Helio continues to bleed money, now $560 million in the red
We'll be honest with you -- it's a bit disheartening to watch the (seemingly) inevitable happen to Helio. After all, it's managed to soldier on despite hordes of other MVNOs hanging it up here in the US of A. Nevertheless, data gleaned from EarthLink's most recent annual report shed some light on its deteriorating situation. Reportedly, Helio's net loss "widened by 41.3-percent to $326.6 million in 2007 compared to $191.8 million in 2006," yet revenues managed to grow 267-percent to $171 million from $46.6 million the year prior and subscriber growth rose 28-percent over last quarter to 180,000. Add those figures to the $42 or so million it lost in 2005, and we're up to a grand total just south of 560 million American dollars. Tough times, indeed. [Via Silicon Alley Insider]
A trip down Helio's memory lane
Back before there was Helio, there was Earthlink, South Korea's SKT, and a dream. Heliocity managed to score some shots of just what that dream looked like in the early days, a similar -- yet decidedly different -- vision than what the MVNO ended up bringing to market. Not only are the prerelease versions of Helio's first two models to market (the Kickflip and Hero) "SK Earthlink" branded, but check out that super trippy Kickflip proto, complete with aerial antenna and secondary LCD for self-portraits. The Ocean obviously came along further down the road, and while we like the all-black finish Helio decided on, we think the two-tone action here would've made for an interesting second choice. Read on for all the visuals.
Earthlink puts municipal WiFi business up for sale
It looks like Earthlink was talking about plenty more than just Helio and revenue figures during its recent earnings call, with CNET News.com now reporting that the company also dropped word that it's selling off its much-hyped and significantly-scaled-back municipal WiFi business. Of course, that news hardly comes as a bombshell given the company's recent rumblings on the matter, to say nothing of its drawn out, ill-fated attempts to spread its WiFi signals throughout San Francisco. Earthlink apparently hasn't found any takers just yet, however, and there's no word about how much their asking for it, but we wouldn't let that stop you from putting in an offer -- just be ready to put up with plenty of competition.
Earthlink CEO says cutting off Helio was a "difficult decision"
It's hardly been a secret that Helio was causing some problems for Earthlink, but the company's CEO has just now weighed in himself on the matter, offering some comments on the situation and Helio's now former CEO Sky Dayton in one of those always exciting earnings calls. As mocoNews reports, Earthlink's Rolla Huff says the company "made hard decisions around getting our cost structure down," including the "very difficult decision...to not continue making incremental investments in Helio." Huff apparently laid none of the blame on Helio's Sky Dayton, however, saying simply that "Sky has a history of creating and building strong brands and he's done a great job at that with Helio," and that they "very much appreciate his willingness to be involved in getting Helio to this point in its life cycle." Of course, that was hardly the entire purpose of the call, and those concerned with the nitty gritty of earnings details can get their fix by hitting up the read link below.
Helio's Sky Dayton steps down as CEO
Sky Dayton, founder and chairman of the phantasmagorical Helio, has announced that he's stepping down as CEO to become chairman of the board of the last-man-standing MVNO. Helio's new CEO will be Wonhee Sull, formerly the company's president and COO, and obviously a direct conduit to co-owner SK Telecom. "Helio has reached a point in its development where I feel the timing is right for this change... As we have for the past three years, the two of us will continue to define Helio's direction and future," said Dayton. Whether Sky's really ready to move on or not we'll never know, but it's certainly possible that the recent influx of cash (and increased ownership) from its Korean parents and dwindling marketshare of US MVNOs led SK to step in and get things on track.Update: Lots of fun inaccuracies going on up in here, our bad. We ironed out the kinks, see above for the latest, correct edits to Helio's executive musical chairs.
The Second Life Philip Linden/Gavin Newsom Fireside Chat, part 2
This is the second of two parts to the Fireside Chat between Second Life's Philip Rosedale (aka Philip Linden) and San Francisco Mayor Gavin Newsom at the New Globe Theater, a meeting held and sponsored by Millions of Us, a metaverse development company (MDC), with Reuben Millionsofus as moderator. This is the mp3 and transcript of part two of the chat. You can hear and read part 1 here. Enjoy![Mp3] Download the MP3 directly[Thanks, Celebrity!]
Earthlink considers "strategically" withdrawing MuniFi investments
In a statement so laden with PR speak that it'd bring even the most heartless PR flack to the brink of wretching, Earthlink's CEO has announced that the company is to withdraw investment in Municipal WiFi schemes unless the "model" of these networks becomes more closely aligned with Earthlink's undefined "strategy." Translation? Earthlink ain't making a big enough return on its investments in MuniFi projects, and the shareholders are getting antsy. This could leave various cities high and dry without WiFi, although Earthlink apparently won't be able to simply walk away from the contracts that they've already signed. This could be a major setback for blanket WiFi coverage in cities across the US, although we doubt it'll be long before someone else picks up the baton (either that, or the cities will probably drop it.)[Via Slashdot]
SK Telecom effectively taking over Helio
We knew Earthlink and SK Telecom were both planning on reinvesting up to $100M each into struggling joint venture Helio back in July, and it looks like all that recent talk about "revised governance" was on point -- the deal will effectively shift management control of Helio away from Earthlink and to SKT for the first time in Helio's history. SKT has already allocated $70M to make the move, and it's also committed an additional $100M to future handset development and marketing. No word on what other changes SKT plans to make, but we'd happy to see Helio score a much-deserved second chance.[Via MobileTech News]
SK Telecom handing over $270 million (more) to Helio
As if receiving $200 million from SK Telecom and EarthLink back in July wasn't enough, Helio is now set to accept (up to) a $270 million check from SK Telecom. According to EarthLink, SK Telecom will "invest up to $270 million in Helio," and as expected, EarthLink was "very pleased" with the decision -- you know, considering that it won't be forced to cough up any more dough at the moment while still maintaining "substantial ownership interest in Helio's future." Most interesting, however, is the tidbit that mentions the parents' plans, as EarthLink and SK Telecom are reportedly "in discussions to amend their existing agreements to reflect the additional investment by SK Telecom and their future governance of Helio." Gotta pay to play, we suppose.
San Francisco muni WiFi project on its death bed
Not that anyone who lives in the fair city of San Francisco was really all that confident that the muni WiFi project would ever make it off the ground -- even despite Major Gavin Newsom's best intentions -- but now it looks like bad's gone to worse. As you may have read, yesterday EarthLink laid off nearly a thousand employees, and word came today that addition to that news, it's latest corporate restructuring would have it completely backing out of investments in its San Fran WiFi project contract, as well as the WiFi contracts in other cities. Again, not the most earth quaking news, given the word we received from the city that they were more or less pulling the plug anyway.Watch the whole thing crumble, in slow-mo reverse chronological order:Read (April 6th, 2006) - San Francisco selects Google/Earthlink for citywide WiFiRead (January 6th) - It's official: San Francisco to get free WiFi blanket courtesy of Google / EarthLinkRead (August 6th) - San Francisco pulls the plug on Google / Earthlink's citywide WiFi... for nowThis post, today.
FCC chimes in on 'white space' device from Google, Microsoft and others: it doesn't work
It's hard not to love the promise of the White Space Coalition, which includes players like Google, Microsoft, Dell, Earthlink, HP, Intel and Philips. Those crazy kids want to bring us wireless internet over the "white space" bandwidth in between TV broadcast channels, and we say let 'em. One little problem though, FCC says the concept doesn't work. The prototype that the Coalition submitted for review was designed to sense existing TV signals and transmit around them, but the FCC found it inconsistent in this aim, and won't be giving its stamp approval to a device that interferes with existing broadcasts. The FCC does say that it's open to looking at the next generation of the technology, since better performance is certainly possible, and the White Space Coalition wasn't too downhearted: the group is "encouraged that FCC engineers did not find fault with our operating parameters and remain confident that unlicensed television spectrum can be used without interference." Between this fledgling technology and that upcoming 700MHz auction, things are really looking up for WiFi-jilted mobile internet users across the States.
San Francisco pulls the plug on Google / Earthlink's citywide WiFi... for now
It looks like the people of San Francisco are going to have to wait a little bit longer before they can spam their friends with memes while sitting in the middle of Golden Gate Park. The WiFi blanket deal which would see Google and Earthlink teaming up to deliver a citywide network to the Bay-area has ground to a halt after a round of somewhat "unfriendly" statements from Earthlink concerning the plans. David Noyola, speaking on behalf of the San Francisco Board of Supervisors (which has been overseeing the project) said that the network's rollout has stalled "in the shadow of comments," made last week by Rolla Huff, the internet provider's CEO, who expressed reservations over municipal wireless deals. Breaking points in particular seem to be the city's request for changes in data speed and privacy controls, and its desire to downsize Earthlink's contract on the network from 16 years to eight (significantly reducing the company's time to earn a profit). The internet provider now claims that they are doing a "detailed review," of their business model regarding the project, which the company says will not provide "an acceptable return." Obviously a lose-lose situation for the laptop-toting citizens of the City by the Bay.